REG-Interim Results <Origin Href="QuoteRef">GLDP.L</Origin>
22/02/2016 07:10
Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration
22 February 2016
Goldplat plc ('Goldplat' or 'the Company')
Interim Results
Goldplat plc, the AIM listed gold producer, announces its interim results for
the six months ended 31 December 2015.
Overview
* Return to net profitability with a profit before tax of £395,000 for the
six months ended 31 December 2015 (6 months 2014: loss of £377,000)
* Primary gold recovery operations in South Africa and Ghana both cash flow
positive
* Overall gold production for the six month period was 17,457 ounces (FY
2015: 30,525 ounces)
* 17,875 ounces total gold sold / transferred (FY 2015: 24,904 ounces)
* A significant JORC compliant resource of 81,959 ounces of gold with
additional silver and uranium oxide upside has been identified in the tailings
facility at gold recovery operation in South Africa - work underway to
determine optimal production and processing methods to optimise value
* Expansion and development plans underway at Kilimapesa Gold Mine in Kenya
to alleviate project losses going forward
* Results underpin the success of Goldplat's turnaround strategy - additional
capital projects planned to retain more of the value in-house and further
increase profitability
Chairman's Statement
I am delighted to report that Goldplat has returned to net profitability
during the period under review. Our portfolio of core assets consists of two
gold recovery operations recovering gold from by-products of the mining
process in South Africa and Ghana, and the Kilimapesa gold mine in Kenya.
I am pleased to say that the turnaround strategy put into place in the
previous year to address various issues, as well as to make Goldplat more
profitable in the continued low gold price environment, has progressed well
during this interim period and is starting to deliver the desired outcomes and
benefits. Risks associated with reliance on a single refinery have been
mitigated, and elution throughput capacity at Goldplat Recovery (Pty) Ltd in
South Africa has been increased to in excess of eight tonnes per day. Numerous
capital projects, all funded internally and critical to the turnaround, have
been successfully completed and backlog stocks have largely been processed.
The problems relating to Rand Refinery, which resulted in the inability to
process certain materials, significant backlog stock build-up, consequential
reduced new deliveries from numerous clients, and a significant reduction in
cashflow and profitability, are now behind us. The primary recovery
operations are both cashflow positive and profitable.
With regard to our financial performance, I am pleased to report a profit
before tax of £395,000 for the six months ended 31 December 2015 (a
turnaround from a loss before tax of £796,000 for FY2015 and a loss of
£377,000 for the six month period ended 31 December 2014). At the operating
level the profit was £261,000 (compared to a loss of £711,000 for FY 2015
and a loss of £827,000 for the six months ended 31 December 2014). Cash and
cash equivalents at the end of the period stood at £729,000 (compared to
£630,000 at end of FY 2015 and £643,000 at the end of December 2014).
With regard to group production and sales, overall gold production for the
six month period ended 31 December 2015 was 17,457 ounces (compared to 30,525
ounces of gold in FY 2015) and significantly, total gold sold / transferred
for the period was 17,875 ounces (compared to 24,904 ounces in FY 2015). This
demonstrates not only increased levels of production, but increased sales and
a turnover in stocks. The following table summarises gold production,
transfers and sales for the period per operation:
Goldplat Plc Consolidated 31 December 2015 kg 31 December 2015 oz Year ended 30 June 2015 total kg Year ended 30 June 2015 total oz
Total gold production
Gold Recovery Ghana 146 4,694 190 6,111
Kilimapesa Gold 29 932 71 2,278
Goldplat Recovery 368 11,831 688 22,135
Total 543 17,457 949 30,525
Gold Sold
Gold Recovery Ghana 175 5,626 80 2,578
Kilimapesa Gold 29 932 64 2,073
Goldplat Recovery 255 8,198 514 16,530
Total 459 14,756 658 21,181
Metal Transfers to clients
Goldplat Recovery 97 3,119 116 3,723
Total 97 3,119 116 3,723
Total sold/transferred
Gold Recovery Ghana 175 5,626 80 2,578
Kilimapesa Gold 29 932 64 2,073
Goldplat Recovery 352 11,317 630 20,253
Total 556 17,875 774 24,904
Goldplat Recovery (Pty) Ltd ('GPL'), South Africa
The focus at GPL for the period was the completion of a number of capital
projects - the most important of which were the installation and commissioning
of a 4-tonne elution column and associated equipment, and the depletion of the
backlog of stock accumulated as a result of the Rand Refinery issues. I am
pleased to report success on these initiatives.
Significant capital projects commissioned during the period, all of which
were funded internally, include the installations of a new electric boiler; a
new woodchip wash plant; a replacement mill in the low grade circuit; a new
pumping station for the tailings treatment plant; a cyanide storage facility;
the aforementioned 4-tonne elution column; an on-site weighbridge, and a
carbon regeneration kiln. All of these projects represent either the
necessary replacement of critical infrastructure and equipment, or new
installations which make the operations more efficient and allow GPL to retain
more of the value chain which had previously been lost to downstream third
parties.
Gold production at GPL for the six month period ended 31 December 2015 was
11,831 ounces of gold (compared to 22,135 ounces for FY 2015) with gold
sales/transferred of 11,317 ounces for the period (compared to 20,253 for FY
2015). These results are particularly pleasing considering that the new
elution capacity only came into production towards the end of the period, and
that significant attention was given to processing material from Goldplat
Recovery Ghana ("GRG").
The highlight of the period was the successful installation and commissioning
of the 4-tonne elution column. As previously reported a used plant consisting
of three 4-tonne elution columns and associated equipment was acquired from
DRD Gold Limited during FY 2015, with the first column being successfully
installed and commissioned at GPL during the six month period ended 31
December 2015. This has increased elution throughput from approximately 1.5
tonne per day to in excess of 8 tonnes per day. Not only has this enabled the
rapid reduction of backlog stocks, but has provided the flexibility and
capacity to procure and process additional sources of material from within
South Africa and internationally.
During the period a Competent Person was engaged to complete a JORC-compliant
Resource Statement for the Tailings Storage Facility at GPL. In January 2016
a total resource of 81,959 ounces of gold, 216,094 ounces of silver and
193,276 pounds of U 3 O 8 (uranium oxide) was declared. Work is underway to
determine the optimal production method, recovery process, final tailings
deposition facility and costs associated with re-processing this material.
Goldplat Recovery Ghana ('GRG'), Ghana
For the six month period ended 31 December 2015, GRG was limited to a single
revenue stream (fine carbon). As a result of the Rand Refinery problems a
significant increase in stock was built up in Ghana, resulting in payments to
clients being delayed, pending treatment, and clients in turn delaying
additional deliveries. In October 2015 GRG entered into a pre-payment
agreement with Auramet International LLC to accelerate receipt of funds due
from Aurubis Refinery in December 2015. This enabled GRG to accelerate
payments to material suppliers in Ghana and in return facilitate the receipt
of new material from these suppliers. This transaction was concluded
successfully and GRG may enter into similar transactions in the future, as and
when required.
Significant progress has been made during the period with respect to the
restoration of production volumes as well as the depletion of stocks.
Production for the six months to 31 December 2015 was 4,694 ounces of gold
(compared to a total of 6,111 ounces of gold during FY2015 and 2 964 ounces
of gold for the six months to 31 December 2014). Gold sold during the period
amounted to 5,626 ounces (compared to 2,578 ounces during FY2015 and 1,242
ounces for the six months to 31 December 2014).
The CIL circuit is currently being dismantled and containerised for shipment
to Kilimapesa in Kenya. This will free up space on the constrained site in
Tema, Ghana for the potential expansion of other revenue streams. Plans for
the final rehabilitation of the tailings deposition dam (which had reached
capacity and was the reason for the cessation of the CIL process) have been
completed with work planned to commence during the period to June 2016. The
rehabilitation of the dam will also free up significant space on site.
During the period a shotblast facility was constructed and commissioned at
GRG for the processing of steel mill liners and production of a concentrate
for export. This represents a new revenue stream for GRG. Contracts for
sourcing of material have been signed post December 2015 and deliveries of
liners have commenced.
Plans are being prepared to install an elution column at the Tema site to
improve the processing of carbon and to produce bullion for export in terms of
our licence agreement with the Minerals Commission.
Strategically, Goldplat continues to view GRG as a significant growth
opportunity with plans to source material for GRG from both West Africa and
South America ongoing.
Kilimapesa Gold
Challenges at Kilimapesa remain significant and production of 932 ounces of
gold for the six month period ended 31 December 2015 was down compared to
2,278 ounces of gold in FY 2015 and 1,081 ounces for the six month period to
31 December 2014. The main reason for this decrease was that sourcing of
tailings from third parties was stopped by the Kenyan Government during the
period. Processing of tailings from within the Kilimapesa lease area has
subsequently been restarted.
Re-opening of Adit D was completed during the period and on-reef development
began. A second outlet to Adit Bull has commenced on reef. Once completed, a
new mining block will be opened up between Adit Bull and Adit D levels, which
will provide production flexibility. Low grade ore is being stockpiled for
later processing and waste sorting continues.
The Teng-Teng mine, which is part of the Kilimapesa exploration permit, was
dewatered and re-equipped during the period. On-reef exploration has
commenced in this area with encouraging gold grades reported by previous
owners being confirmed from initial limited and early stage exploration
work.
A Knelson concentrator was installed at Kilimapesa during the period and is
ready for trials at the existing processing facility.
Operations at Kilimapesa continue to be processing-constrained, both in terms
of the size and efficiency of the existing processing facility as well as the
tailings deposition facility. The life of the tailings deposition facility has
now been extended to 6-9 months. Ground for a new processing facility and
tailings deposition site has been secured with all the necessary documentation
and permitting being substantially complete, with only the approval of the
Environmental Impact Assessment and VAT exemptions pending. Designs for both
the processing plant and the tailings facility have been completed. The
expansion is planned in two stages, the first of which includes moving the CIL
plant from GRG to Kilimapesa and constructing it on the new site. An interim
tailings facility serving the CIL will be constructed on the final facility
site. This process is expected to commence during Q2 2016 and be completed
before the end of 2016.
Discussions regarding funding of the above project as well as regarding
Kilimapesa in general remain ongoing with renewed interest being showed since
the gold price started to improve. A local bank facility of $250,000 is in
place for financing of equipment related to the production and processing
expansion.
Exploration and Development Portfolio
In the light of the political problems in Burkina Faso, the Nyieme gold
project, which is at an early stage of exploration, and Midas Gold SARL, which
has potential to be developed into a gold recovery operation, remain low
priority projects in the near term. In Ghana it is intended that progress
will be made on the Anumso Gold Project. To this end, preliminary talks are
underway with third parties regarding potential partnerships
Conclusion
For the rest of the current year we expect production and sales to continue
at current rates, and for the recovery operations to build on the success of
the first half. Capital projects during the period to June 2016 will be
restricted to high priority projects including, but not limited to, the stage
1 expansion at Kilimapesa and the installation of an elution column at GRG.
The major challenge ahead is to return Kilimapesa to profitability or to find
a corporate solution to alleviate the losses from this operation.
With a turnaround strategy in place and delivering results, the problems
associated with the Rand Refinery overcome, cost cutting efforts continuing,
and the gold price showing signs of recovery, we remain optimistic about the
future of Goldplat.
Brian Moritz
Chairman
22 February 2016
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHES ENDED 31 DECEMBER 2015
Notes 6 months 31-Dec-15 (unaudited) £'000 6 months 31-Dec-14 (unaudited) £'000 12 months 30-Jun-15 (audited) £'000
Continuing operations
Revenue 10,673 8,054 16,628
Cost of sales (9,472) (7,952) (15,660)
Gross profit 1,201 102 968
Administrative expenses (956) (929) (1,679)
Results from operating activities 245 (827) (711)
Finance income 171 644 843
Finance costs (21) (194) (807)
Net finance income 150 450 36
Write off development cost of discontinued South African Mining Operations - - (121)
Income/(Loss) before tax 395 (377) (796)
Taxation 6 (203) (40) (96)
Income/(Loss) for the period 192 (417) (892)
Other comprehensive income/(expense)
Exchange translation (511) 317 (860)
Other comprehensive income/(loss) for the period, net of tax (511) 317 (860)
Total comprehensive (loss) for the period (319) (100) (1,752)
Income/(Loss) attributable to:
Owners of the Company (11) (503) (1,143)
Non-controlling interests 203 86 251
Income/(Loss) for the period 192 (417) (892)
Total comprehensive (loss) attributable to:
Owners of the Company (522) (186) (2,003)
Non-controlling interests 203 86 251
Total comprehensive (loss) for the period (319) (100) (1,752)
Earnings per share - continuing operations
Basic earnings per share (pence) 0.11 (0.25) (0.53)
Diluted earning per share (pence) 0.10 n/a n/a
The notes below are an integral part of this condensed consolidated interim
financial report.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2015
Notes 31-Dec-15 (unaudited) £'000 31-Dec-14 (unaudited) £'000 30-Jun-15 (audited) £'000
Assets
Property, plant and equipment 7 4,475 4,396 4,449
Intangible assets 8 7,253 7,327 7,033
Pre-production expenditure 9 2,136 2,452 2,136
Proceeds from sale of shares in subsidiary 1,093 1,450 1,357
Non-current cash deposits 218 238 233
Non-current assets 15,175 15,863 15,208
Inventories 10 8,063 6,063 7,727
Trade and other receivables 11 4,773 3,421 3,305
Cash and cash equivalents 12 729 643 630
Current assets 13,565 10,127 11,662
Total assets 28,740 25,990 26,870
Equity
Share capital 13 1,685 1,685 1,685
Share premium 11,498 11,498 11,498
Exchange reserve (7,218) (5,530) (6,707)
Retained earnings 9 873 10,508 9,868
Equity attributable to owners of the Company 15,838 18,161 16,344
Non-controlling interests 1,984 1,728 1,893
Total equity 17,822 19,889 18,237
Liabilities
Obligations under finance leases 14 161 183 199
Interest bearing borrowings 15 - - 56
Provisions 16 106 129 121
Deferred tax liabilities 452 454 459
Non-current liabilities 719 766 835
Interest bearing borrowings 15 91 - 104
Obligations under finance leases 14 129 228 120
Taxation 30 - 18
Trade and other payables 17 9,949 5,107 7,556
Current liabilities 10,199 5,335 7,798
Total liabilities 10,918 6,101 8,633
Total equity and liabilities 28,740 25,990 26,870
The notes below are an integral part of this condensed consolidated interim
financial report.
The financial statements of Goldplat plc, company number 05340664, were
approved by the Board of Directors and authorised for issue on 22 February
2016. They were signed on its behalf by:
Ian Visagie, Director
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 DECEMBER 2014
Attributable to owners of the Company
Share capital £'000 Share premium £'000 Exchange reserve £'000 Retained earnings £'000 Total £ '000 Non-controlling interests £'000 Total equity £'000
Balance at 1 July 2014, as previously reported 1,685 11,498 (5,847) 11,011 18,347 1,642 19,989
Total comprehensive income for the period
Loss for the period - - - (503) (503) 86 (417)
Total other comprehensive income - - 317 - 317 - 317
Total comprehensive income for the period - - 317 (503) (186) 86 (100)
Transactions with owners of the Company, recognised directly in equity
Contributions by and distributions to owners of the Company
Share based payments transactions - - - - - - -
Total contributions by and distributions to owners of the Company - - - - - - -
Balance at 31 December 2014 (unaudited) 1,685 11,498 (5,530) 10,508 18,161 1,728 19,889
The notes below are an integral part of this condensed consolidated interim
financial report.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2015
Attributable to owners of the Company
Share capital £'000 Share premium £'000 Exchange reserve £'000 Retained earnings £'000 Total £ '000 Non-controlling interests £'000 Total equity £'000
Balance at 1 January 2015 1,685 11,498 (5,530) 10,508 18,161 1,728 19,889
Total comprehensive income for the period
Loss for the period - - - (640) (640) 165 (475)
Total other comprehensive income - - (1,177) - (1,177) - (1,177)
Total comprehensive income for the period - - (1,177) (640) (1,817) 165 (1,652)
Transactions with owners of the Company recognised directly in equity
Contributions by and distributions to owners of the Company
Share based payment transactions - - - - - - -
Total contributions by and distributions to owners of the Company - - - - - - -
Balance at 30 June 2015 (audited) 1,685 11,498 (6,707) 9,868 16,344 1,893 18,237
The notes below are an integral part of this condensed consolidated interim
financial report.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 DECEMBER 2015
Attributable to owners of the Company
Share capital £'000 Share premium £'000 Exchange reserve £'000 Retained earnings £'000 Total £ '000 Non-controlling interests £'000 Total equity £'000
Balance at 1 July 2015 1,685 11,498 (6,707) 9,868 16,344 1,893 18,237
Total comprehensive income for the period
Profit for the period - - - (11) (11) 203 192
Total other comprehensive income - - (511) - (511) - (511)
Total comprehensive income for the period - - (511) (11) (522) 203 (319)
Transactions with owners of the Company recognised directly in equity
Contributions by and distributions to owners of the Company
Share based payment transactions - - - 16 16 - 16
Total contributions by and distributions to owners of the Company - - - 16 16 - 16
Changes in ownership interests in subsidiaries
Non-controlling interests in subsidiary dividend - - - - - (112) (112)
Total transactions with owners of the Company - - - - - (112) (112)
Balance at 31 December 2015 (unaudited) 1,685 11,498 (7,218) 9,873 15,838 1,984 17,822
The notes below are an integral part of this condensed consolidated interim
financial report.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2015
Notes 6 months 31-Dec-15 (unaudited) £'000 6 months 31-Dec-14 (unaudited) £'000 12 months 30-Jun-15 (audited) £'000
Cash flows from operating activities
Results from operating activities 261 (827) (832)
Adjustments for:
- Depreciation 220 256 390
- Amortisation 90 16 189
- Loss on sale of property, plant and equipment 39 - 148
- Equity-settled share-based payment transactions 16 - -
- Foreign exchange differences (374) 27 (172)
252 (528) (277)
Changes in:
- inventories (336) (975) (2,639)
- trade and other receivables (1,468) 1,365 1,481
- trade and other payables 2,393 (875) 1,574
- provisions (15) - (8)
Cash generated from/(used in) operating activities 826 (1,013) 131
Finance income 171 644 843
Finance cost (21) (194) (679)
Taxes paid (146) (43) (76)
Net cash from/(used in) operating activities 830 (606) 219
Cash flows from investing activities
Proceeds from sale of property, plant and equipment 34 35 24
Enhancement of exploration and development asset (59) (31) (92)
Acquisition of property, plant and equipment (623) (84) (909)
Non-current cash deposit 15 (36) (31)
Net cash used in investing activities (633) (116) (1,008)
Cash flows from financing activities
Payment of interest bearing borrowingsRecent news on Goldplat
See all newsREG - Goldplat plc - Arrival of Generators
AnnouncementREG - Goldplat plc - Appointment of Executive Directors
AnnouncementRCS - Goldplat plc - Investor Presentation Reminder
AnnouncementRCS - Goldplat plc - Investor Presentation
AnnouncementREG - Goldplat plc - Interim results for six-months ended 31 Dec 2023
Announcement